Advanced Options Trading Concepts

Learn advanced options trading techniques and concepts that offer unique opportunities for experienced traders.
Business man holding phone option trading
Straddle vs. Strangle: What's the Difference?
Bull Put Spread: An options strategy used when the investor expects a moderate rise in the price of the underlying asset.
Bull Put Spread: How (and Why) To Trade This Options Strategy
Collar: An options strategy implemented to protect against large losses.
The Collar Options Strategy Explained in Simple Terms
Preemptive Rights: Some Shareholders Get First Dibs on New Stock
What Is a Seagull Option? Definition and How They Work in Trading
What Happens to an Option When a Stock Splits?
scale
Options Arbitrage Opportunities via Put-Call Parity
Factors That Influence Black-Scholes Warrant Dilution
Theta
Theta: What It Means in Options Trading, With Examples
Account, Accounting Concept
Breaking Down the Binomial Model to Value an Option
Depreciation Concept. Stack of Business Papers
Gamma-Delta Neutral Option Spreads
Bull Vertical Spread: What it is, How it Works, Example
Kurtosis: A statistical measure used to describe the distribution of observed data around the mean.
Kurtosis: Definition, Types, and Importance
Bear Spread: Overview, and Examples of Options Spreads
Long Straddle: What It Is and How It's Used
Bermuda Option: What They Are, Examples, Pros and Cons
Computer screen with options volatility candlestick charting
What Is a Volatility Smile and What Does It Tell Options Traders?
Boom
The Iron Condor
Multi-Leg Options Order: Definition, Strategies, Examples
White fence
Lattice-Based Model: What it Means, How it Works
Single Payment Options Trading: What It Is, How It Works
Put on a Put
A pair of traders use desktop computers and discuss forming a short straddle strategy for a security they follow.
Short Straddle: Option Strategies and Examples
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Trade-Or-Fade Rule: What It Means, How It Works, Shortfalls
Chart
Understanding the Options Premium
Analysis
The Dangerous Lure of Cheap Out-of-the-Money Options
Call Ratio Backspread Definition, How to Use It, Example
Trader on the floor of an exchange pointing to something on a monitor and explaining something to another person
Knock-In Option Explained, With Different Types, Examples
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Curve Steepener Trade: Definition, Example, and Trading Strategy
A business woman using a calculator.
How Can I Calculate the Delta Adjusted Notional Value?
Money
The Alphabet Soup of Credit Derivative Indexes
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Understand the Option Risk With Covered Calls
Interest Rate Collar: Definition, How It Works, Example
Delta-Gamma Hedging: Definition, How It Works, Example
Flexible Exchange Option (FLEX): Components, How it Works
Financial Services, Viewing Financial Markets for Investing
Strip Options: A Market Neutral Bearish Strategy
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Asset Swapped Convertible Option Transaction (ASCOT) Overview
Credit Default Swap Index (CDX): A benchmark index that tracks a basket of U.S. and emerging market single-issuer credit default swaps.
Credit Default Swap Index (CDX): What It Is and How It Works
Shareholder
Full Ratchet Anti-Dilution: Definition, Example, and Alternative
Strap Options: A Market Neutral Bullish Strategy
Spread Option: Definition, Examples, and Strategies
Bermuda Swaption: What it is, Styles, Pricing
How to Execute the Iron Condor Strategy
Fiduciary Call: What it is, How it Works
Structured Note
Structured Note: What It Is, How It Works, and Common Types
Bear Put Spread: Purchasing put options while also selling the same number of puts on the same asset with the same expiration date at a lower strike price.
Bear Put Spread: Definition, Example, How It's Used, and Risks
Option-Adjusted Spread (OAS): A way for investors to compare the yield of two different fixed-income offerings that have embedded options.
What Is Option-Adjusted Spread (OAS)? Definition and Example
Implied Volatility
Profiting From Position-Delta Neutral Trading
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Advanced Option Trading: The Modified Butterfly Spread
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What Is a Hybrid Security and What Are Different Types?
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Accordion Feature: What it Means in a Loan Agreement, Examples
Land Lease Option: What It Is, How It Works, Example
Cardboard peeled back over words "are you covered?"
Write Covered Calls to Increase Your IRA Income
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What Is an Iron Butterfly Option Strategy? Example and How to Use
Business Concept
A Beginner's Guide to Embedded Options in Bonds
Compound Option: Meaning, Variations, Example
Perpetual Option (XPO): What it Means, How it Works, Example
Midsection Businessmen Analyzing Charts On Laptop In Office
How a Protective Collar Options Strategy Works
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One-Touch Option: Meaning, Overview, Outcomes

Options and Derivatives